House Purchase through Limited Business

[Eric Mc]

They would have paid income tax (but not NI) on the rental income, which would have been at whatever the higher rates of income tax were at the time.

[Mx_Stu]

What about tax planning using something like a family benefit trust? essentially the company funds the trust who purchases the house. In my experience I have seen them used to purchase helicopters and boats but not houses.

I cant see a reason why you would'nt be able to set up a trust deed to allow you to occupy the property and not having to pay market rent.

[pugwash4x4]

Eric Mc said:

Look up Section 419 Regulations.

ooh that phrase makes me shiver.

Hmm let's make a 25% interest free loan to the government.

One thing that should be considered here is that you would be losing a prime benefit of a limited company- ie protection. if the company goes bust you will almost certainly lose your house- whereas if you own the house personally, if the Ltd Co goes bust you are far far more unlikely to lose it.

LTV point is a good one- Co would have to finance on a Buy to let scheme or similar which would push LTVs close to commercial 30% rates

[scotal]

pugwash4x4 said:

LTV point is a good one- Co would have to finance on a Buy to let scheme or similar which would push LTVs close to commercial 30% rates

Ltd company BTL's are available up to 85% , but you are limiting your range of lenders and you will probably find you dont get the best rate.